The 2015 tax year brought much added paperwork in the way of forms and letters for the everyday taxpayer. For most, this is the first year that they’re receiving some of these documents, and the information contained within them may be confusing. If you’ve received a letter from the IRS marked as “12C,” you are not alone. This letter directly applies to the premium tax credit and whether or not the Health Insurance Marketplace made a payment to you or your family’s health care provider prior to tax season. Further, you may receive 12C should you file a tax return without Form 8962, Premium Tax Credit (PTC), and therefore haven’t reconciled with the IRS your PTC with the Marketplace’s advance payment to your provider. This can delay the processing of your return and even further delay your refund or future potential for advance credit payments.
To proceed, you must do one of the following: contact the IRS via letter (by mail or fax) expressing inconsistencies with 12C if any or notify the IRS if you didn’t purchase your health insurance through the Health Insurance Marketplace. Your communication with the IRS should include a copy of Form 1095-A (if you purchased your insurance through the Marketplace), Form 8962, and Page 2 of your tax return, including the “Tax and Credits” and “Payments” portions, specifying whether there was a net PTC or PTC repayment.
Please note that if you initially filed Form 1040EZ as your tax return, you must complete the same information on Form 1040A and also send it to the IRS. Do not file Form 1040X in this instance.
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